Semiconductor heavyweight Intel (INTC) reported its first loss in 22 years, primarily because of a hefty fine from the European Union. Second-quarter sales beat analysts’ estimates, thanks to rebounding demand, reports Ian King for Bloomberg. Intel was fined $1.45 billion in May for using what the EU said was illegal rebates to stifle competition. Intel is appealing the decision.
Numbers in the semiconductor industry overall are still lower than 2008, however, the sales are up for the month of May against the month before, according to The Semiconductor Industry Association. New Mexico Business Weekly reports that the sales of $16.5 billion in May, up from $15.6 billion in April, based upon a three-month rolling average.
The second half of 2009 is predicted to be a better environment for the sector, however, cutbacks and demand are down overall for the industry right now. iStock Analyst reports that tech companies are lowering their forecasts.
Worldwide, electronic equipment revenue is expected to drop 9.8% to $1. 38 trillion, according to ISuppli data.
- SPDR S&P Semiconductors (XSD): up 40.4%year-to-date
- PowerShares Dynamic Semiconductors (PSI): up 17.7% year-to-date
- iShares S&P North American Tech Semiconductors (IGW): up 30.4% year-to-date
For more stories about semiconductors, visit our semiconductor category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.